Regulation
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The United Kingdom has previously announced a course to become a cryptohub, but the country’s tax rules may significantly slow down the achievement of this goal.
As you know, recently the second largest market capitalization cryptocurrency successfully completed an update called Merge, which allowed Ethereum holders to block or place their coins on the Ethereum blockchain and receive up to 2.5% profit by verifying transactions using the Proof-of-Stake model.
Thanks to the Confluence, staking, previously available to crypto investors, is now suitable for ordinary traders. However, the rules for staking and paying taxes in the UK are different from other countries.
The rulings, issued in February, place additional tax liability on crypto investors and create additional complexity in an already complex process that previously did not require working Britons to file annual returns.
In this regard, the authorities will inevitably face an additional administrative burden when working with staking.
The tax authorities will create a big headache for themselves if they require many people to file tax returns only for transactions with cryptocurrency, said EY tax partner David Wren.
As we can see, the lack of consistency in the actions of regulators, while at the same time striving to impose additional taxes on crypto investors, turns out to be a big burden for government agencies.
#Staking #Tax #Returns #Overwhelm #Inspectors
